Feedback for An investor sold 5 wheat contracts where one contract consists of 144 Kgs of wheat when the price per Kg of wheat was $40. Assuming initial margin requirement is $2500 and the maintenance margin is $1650 which is paid by the investor at the time T0, find out amount need to be paid by the investor to maintain margin requirements at T1 if price decreases to $38.75 and initial payment made by the investor at time T0 to fulfil margin requirements.

There should be no margin payment as the investor sold (short position) the contract. The decline in prices will not trigger any margin call.

Location: Quiz B3C05 Exchange and OTC Markets

There should be no margin payment as the investor sold (short position) the contract. The decline in prices will not trigger any margin call.

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